24 Oct

Open Swing Trade Updates For Monday October 24, 2011


Asia did well overnight, Europe is up right now and futures look good. We should hear something definitive out of Europe on Wednesday. It’s still my belief that the market wants to breakout and go higher, something I’ve been feeling for a few weeks now. Here are my considerations for GLUU and QPSA today.

We need GLUU to hold $2.90 and turn up into earnings next Thursday after the close. Other than the dip to $2.60 last Thursday, the price has held up this new shelf. Selling was light Friday but so was buying. CK Zombies continues to be a top grossing game when I check the Apple store and I’m hoping that starts to spark some debate about strong earnings causing the runup. My hope is to get up on this trade so I can ride it as far as possible before earnings. Best case $1 per share on a breakout above $3.75 by early next week. Resistance is $3.20, $3.45 and $3.80 and support is $2.86, $2.74 and $2.66.

QPSA is one we added Friday at $2.95 which I believe to be just above $2.75 support and therefore a good entry. I only grabbed 3k shares and indicated I intend to buy 2k more at support of $2.75 with a stop below there around $2.65 if it appears there is not interest. Goal here is to time the runup before news on the myYearbook deal. If it goes through I expect one of my better wins. The risks here are the company announces additional financing is necessary to make the deal go through or worse, the deal is off. I have my eye on the news 24/7 and will sell immediately if it’s bad. If it’s good $1-$3 upside is possible. As always, I won’t hold into any earnings but theirs aren’t until 11/24/11 and that time frame isn’t what I’m looking for. The announced closing the myYearbook deal in the Q4, so let’s see if they keep their end of the deal up, I have a feeling they will sooner versus later. Since we have a good support below us at $2.75 we can use as a tight stop loss, the risk to reward is in our favor so long as you stick to your stop range.

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